Factor-tilted equity rocket pretending to be a chilled balanced portfolio
Report created on Apr 23, 2026Risk profile
4/7
Diversification profile
4/5
Positions
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SP SPDR S&P 500 UCITS ETF USD Acc EUR
SPYL - IE000XZSV718 40.00% -
IS iShares Edge MSCI World Value Factor UCITS ETF USD (Acc) EUR
IS3S - IE00BD45HH35 30.00% -
5M iShares Edge MSCI EM Value Factor UCITS ETF USD (Acc) USD
5MVL - IE00BG0SKF03 15.00% -
CE iShares Edge MSCI Europe Momentum Factor UCITS ETF EUR (Acc)
CEMR - IE00BQN1K786 15.00%
This “balanced” portfolio is 100% equity and 100% in four ETFs, so the word “balanced” is doing a lot of heavy lifting. Forty percent goes into a plain S&P 500 tracker, then things suddenly get spicy with big tilts to global value, EM value, and European momentum. It’s like someone started by copying a generic index portfolio and then rage-clicked a few smart-beta funds. The structure is simple but not exactly gentle: one core fund and three factor experiments, all fully in stocks. On paper it looks diversified; in practice it’s basically a single high-octane equity bet wearing a “risk 4/7” badge.
Growth
Historically, this thing has absolutely flown: €1,000 turned into €1,708 in under three years, a 24.22% CAGR. That’s a face-melting growth rate, outpacing both the US market and global market by roughly 5 percentage points a year. But the max drawdown of -19.62% says it still punches like an equity portfolio when markets get moody. And needing just 24 days to generate 90% of returns means performance is extremely concentrated in a few lucky bursts. Past data is like yesterday’s weather: nice bragging rights, but it doesn’t guarantee this factor cocktail keeps beating the benchmarks so cleanly.
Projection
The Monte Carlo projection is the financial equivalent of running 1,000 alternate timelines to see how this portfolio might behave. Median outcome: €1,000 becomes about €2,903 in 15 years, which is solid but nowhere near the recent 24% annual rush. The “likely” range (€1,864–€4,316) politely reminds that results could be just decent or very good, while the wider €1,073–€8,145 band shows both boredom and dream-scenario are on the table. An 8.38% average annualized return across simulations is far more down-to-earth than the backtest, which is exactly what you’d expect once the party-factor performance gets sanded down by reality.
Asset classes
- Stocks 100%
Asset class breakdown is easy: it’s all stocks, all the time. No bonds, no cash buffer, nothing remotely defensive. For something labeled “balanced,” this is like ordering a mixed grill and getting a plate of just steak. A 100% equity allocation means the portfolio lives and dies with the stock market cycle; there’s no shock absorber when things get ugly. That’s fine as long as everyone admits this is an equity engine, not some middle-of-the-road, half-safety, half-growth construction. The “Balanced Investors” tag looks more like a marketing sticker than an accurate description of what’s under the hood.
Sectors
- Technology 29%
- Financials 18%
- Industrials 12%
- Consumer Discretionary 8%
- Health Care 8%
- Telecommunications 7%
- Basic Materials 4%
- Energy 4%
- Consumer Staples 4%
- Utilities 3%
- Real Estate 2%
Sector mix screams “I love tech, but I also want to look sophisticated.” Technology is the clear addict at 29%, with financials a distant second at 18%, then a drop-off into the usual background sectors. This isn’t absurdly concentrated by index standards, but tech is still the main character here. The rest of the sectors feel more like extras than co-stars. When tech is in fashion, this profile looks genius; when it isn’t, the portfolio suddenly discovers gravity. The factor funds don’t rescue this from tilting toward growthy, cyclical stuff either — they just remix the same underlying economic sensitivities in a slightly nerdier way.
Regions
- North America 54%
- Europe Developed 24%
- Asia Developed 8%
- Japan 6%
- Asia Emerging 5%
- Latin America 2%
- Africa/Middle East 1%
- Europe Emerging 1%
Geographically, it’s basically “US first, Europe as backup, everyone else gets a participation trophy.” North America at 54% dominates the show, with developed Europe at 24% as the sidekick and the rest of the world fighting over scraps. For a portfolio using global and EM value funds, the non-US slice is more modest than the branding suggests. It looks worldly on paper, but over half the risk is still tied to US and friends. There’s nothing inherently wrong with a US-heavy stance, but calling this “broadly diversified” is generous — it’s more “global-ish, but let’s not stray too far from the S&P comfort zone.”
Market capitalization
- Large-cap 42%
- Mega-cap 41%
- Mid-cap 16%
Market cap exposure is basically a love letter to big, established companies: 41% mega-cap and 42% large-cap, with mid-caps thrown in as a token 16%. Small caps don’t even get invited to the party. This makes the portfolio feel stable and serious, but also very index-like and a bit predictable. The factor overlays talk a big contrarian game, yet the actual size mix is still dominated by the usual giants. That means performance is highly aligned with how the global corporate behemoths are doing, not with any cute under-the-radar growth stories. It’s a big-company fan club dressed up as a factor strategy.
True holdings
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NV NVIDIA Corporation 3.02%
Part of fund(s):- SPDR S&P 500 UCITS ETF USD Acc EUR
-
AA Apple Inc 2.66%
Part of fund(s):- SPDR S&P 500 UCITS ETF USD Acc EUR
-
MS Microsoft Corporation 1.96%
Part of fund(s):- SPDR S&P 500 UCITS ETF USD Acc EUR
-
MU Micron Technology Inc 1.63%
Part of fund(s):- iShares Edge MSCI World Value Factor UCITS ETF USD (Acc) EUR
-
23 Taiwan Semiconductor Manufacturing Co. Ltd. 1.55%
Part of fund(s):- iShares Edge MSCI EM Value Factor UCITS ETF USD (Acc) USD
-
AM Amazon.com Inc 1.45%
Part of fund(s):- SPDR S&P 500 UCITS ETF USD Acc EUR
-
GO Alphabet Inc Class A 1.19%
Part of fund(s):- SPDR S&P 500 UCITS ETF USD Acc EUR
-
CS Cisco Systems Inc 1.05%
Part of fund(s):- iShares Edge MSCI World Value Factor UCITS ETF USD (Acc) EUR
-
AV Broadcom Inc 1.05%
Part of fund(s):- SPDR S&P 500 UCITS ETF USD Acc EUR
-
GO Alphabet Inc Class C 0.96%
Part of fund(s):- SPDR S&P 500 UCITS ETF USD Acc EUR
- Top 10 total 16.52%
Look-through holdings reveal the usual suspects quietly running the show: NVIDIA, Apple, Microsoft, Amazon, Alphabet, TSMC, Broadcom — the entire AI and megacap royalty lineup is here. And that’s just within the 31% coverage of ETF top-10s, so the real overlap is almost certainly higher. This is the classic “I own four funds” illusion where, underneath, the same handful of mega-stocks appear on repeat. Hidden concentration isn’t extreme numerically yet, but the direction is clear: different wrappers, very similar engines. It’s less four independent ideas and more one big, tech-heavy global equity bet sliced four different ways.
Risk contribution
-
SPDR S&P 500 UCITS ETF USD Acc EUR
Weight: 40.00% 41.0% -
iShares Edge MSCI World Value Factor UCITS ETF USD (Acc) EUR
Weight: 30.00% 28.4% -
iShares Edge MSCI EM Value Factor UCITS ETF USD (Acc) USD
Weight: 15.00% 15.4% -
iShares Edge MSCI Europe Momentum Factor UCITS ETF EUR (Acc)
Weight: 15.00% 15.1%
Risk contribution is refreshingly honest: the S&P 500 ETF weighs 40% and contributes 41.04% of risk, basically running this show. The two value funds and the Europe momentum ETF all punch almost exactly at their weights too. No hidden monster; just four big drivers doing what they say on the tin. Top three holdings delivering about 85% of total risk shows concentration, but that’s inevitable with only four positions. It’s tidy, but also fragile: if one of these pillars seriously wobbles, there’s nowhere for risk to hide. This is a four-legged table — stable until one leg gets kicked hard.
Risk vs. return
This chart shows the Efficient Frontier, calculated using your current assets with different allocation combinations. It highlights the best balance between risk and return based on historical data. "Efficient" portfolios maximize returns for a given risk or minimize risk for a given return. Portfolios below the curve are less efficient. This is informational and not a recommendation to buy or sell any assets.
Click on the colored dots to explore allocations.
On the efficient frontier, this portfolio is leaving performance on the table. With a Sharpe ratio of 1.4 at 13.33% risk, it sits about 1.13 percentage points below what could be achieved just by rearranging the same four holdings. The optimal mix boosts Sharpe to 1.81 with slightly higher risk and much higher return, while even the minimum variance combo squeezes out a better Sharpe than the current setup. Translation: this isn’t a disaster, but it’s definitely not making the smartest use of its ingredients. Same funds, different weights, noticeably better risk–return — right now it’s a bit like driving a sports car stuck in second gear.
Ongoing product costs
- iShares Edge MSCI EM Value Factor UCITS ETF USD (Acc) USD 0.40%
- iShares Edge MSCI Europe Momentum Factor UCITS ETF EUR (Acc) 0.25%
- iShares Edge MSCI World Value Factor UCITS ETF USD (Acc) EUR 0.30%
- Weighted costs total (per year) 0.19%
Costs are, annoyingly, one of the most sensible parts here. A total TER of 0.19% for a factor-heavy, multi-ETF setup is actually pretty lean. The EM value fund at 0.40% is the priciest guest, but even that isn’t outrageous for emerging markets with a smart-beta twist. The rest sit in the reasonable 0.25–0.30% zone. So no, this portfolio isn’t donating a huge slice of returns to fund companies every year. If anything, the fee level suggests someone actually paid attention at the cost lecture — which makes the slightly clunky risk/return positioning even more ironic. Cheap ingredients, slightly awkward recipe.
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